The problem of finding a hefty deposit can be a challenge for many renters, so the insurance sector is coming up with solutions. Here’s the word ona new partnership aiming to streamline that process.
SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE: SPNT), a global specialty insurer and reinsurer, has announced a strategic partnership with Garentii, a tech-enabled Managing General Agent (MGA) providing digital home rental insurance. As part of the partnership, SiriusPoint will provide risk advisory services along with paper and balance sheet. The partnership builds on the growing number of companies in SiriusPoint’s MGA and insurance services portfolio, and is the second partnership outside the North American and Bermuda business.
Garentii is a Munich-based insurtech/proptech startup. The company offers renters a flexible alternative to security deposits, while streamlining operations, boosting occupancy, and reducing management costs for real estate landlords. Instead of three months’ rent as a cash deposit, Garentii offers renters an insurance policy for a monthly fee, which starts at three euros.
The company aims to rapidly scale its offering through its business to business to consumer model, to provide renters with the flexibility they are increasingly seeking in the changing economic climate.
“Germany is the largest rental market in Europe,” said Bobby Heerasing, Head of International Strategic Business Development, at SiriusPoint. “The country has 49 million renters, and 9-10 million of those move every year – resulting in around EUR 35 billion of residential cash deposits trapped. Garentii’s compelling product has terrific room for growth, both within Germany and into other European countries.”
“Paying a cash deposit is one of the most inefficient uses of capital for renters and an admin burden for landlords. At Garentii, we have built an embedded insurance solution that creates value for both parties,” said Michael Hazoume, Garentii’s Co-Founder and Chief Executive Officer. “Having the backing of SiriusPoint, which seeks out and supports entrepreneurial thinking, is a great asset to our company. We are looking forward to moving quickly and building a dynamic insurance product in the European real estate market.”
“We are very pleased to be partnering with Garentii and to add a second MGA to our International portfolio,” said Patrick Charles, Global Head of Property and Casualty (P&C) Insurance & Services, at SiriusPoint. “There are some compelling opportunities in the international market. By working with partners like Garentii, who are addressing coverage gaps and innovating in the insurance space, we believe we can make an impact on the market and benefit our partners, the end user, and our business, all at the same time.”
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